Bank of America’s CEO, Brian Moynihan, has been added to a new leadership team, signaling a potential move toward finding his successor. Interestingly, Moynihan, who is 65, has expressed a desire to remain in his role until 2030.
In a recent announcement, he appointed Dean Atanasia, the head of regional banks, and Jim Demare, head of global markets, to serve as co-chairmen of this new group.
Moynihan also shared that Chief Financial Officer Alastair Borthwick has been elevated to the position of vice president and will act as a “strategic advisor” to the management team.
He noted, “For the past 15 years, Dean and Jim have been leaders, strategists, and growth managers. Together, they bring nearly 60 years of experience in financial services across various client segments and industries.”
Regarding Borthwick, Moynihan stated, “His financial stewardship and broad leadership have been vital to our progress. Under his tenure as CFO, we have fortified all key aspects of our balance sheet.”
Despite this structural change, Moynihan plans to continue his role as CEO until at least 2030, underscoring that he took over in 2010 during a challenging period following the global financial crisis.
However, this outlook hasn’t pleased everyone on Wall Street. Analyst Mike Mayo from Wells Fargo pointed out the increasing pressure on Moynihan to enhance performance and boost stock prices.
Mayo highlighted specific areas requiring improvement, such as Corporate and Investment Banks, Private Banks, and Merrill Lynch.
There have also been internal concerns among senior staff about Moynihan’s cautious and legalistic management approach. Reports suggest that some employees, particularly those on trading desks, have voiced dissatisfaction regarding this style and its impact on client relations.
Additionally, there are worries that failure to adapt could make the bank vulnerable to potential activist investors.
So far this year, Bank of America shares have risen by 15%, which is quite a bit lower than its competitor JPMorgan Chase, whose shares have surged by 28%. The S&P Bank Index is up by 20% in the same period.
Bank of America is set to disclose its latest quarterly results on October 15, just three weeks ahead of the Investor Day scheduled for November 5 in Boston.
